USD/JPY off-lows, but remains capped below 114

The USD/JPY pair stalled its corrective slide from eight-week highs near 113.65 levels, and attempted another run towards 114 handle, but in vain, as a broadly weaker US dollar caps further recovery.

USD/JPY fails to resist above 114.00 in Asia

The major came under fresh selling pressure in Asia, also as the yen regained footing after the BOJ ‘Summary of Opinions’ of the April monetary policy meeting, while BOJ Kuroda’s comments in parliament hinted at QE taper, which also boosted the Japanese currency.

Also, a retreat in the US dollar across the board amid tumbling treasury yields also keep the spot in the red zone for the first time in four days. However, losses remain limited amid a risk-friendly market environment, as the Japanese stocks trade firmer alongside commodities’ prices.

More so, upbeat Chinese CPI figures add to the risk-on trades persisting in Asia, and hence, offer some support to the prices. Focus now shifts towards the US import prices data and Federal Budget balance due later in the NA session.

USD/JPY Technical levels                 

A break above 114.06 (daily high) would expose 114.50 (psychological levels) and 114.91 (Mar 15 high). On the other hand, a breach of support at 113.36/29 (20 & 5-DMA) could yield a test of 113 (key support) and 112.68 (10-DMA).